1 | Page Guidelines for Use of Funds – NADPRP, Updated 7/13/2022

Guidelines for Use of Funds

USDA APHIS Veterinary Services

National Animal Disease Preparedness and Response Program

Cooperative and Interagency Agreements

This guidance describes costs allowed or unallowed for reimbursement through an APHIS Veterinary Services 

(VS) Cooperative or Interagency Agreementfunded via Farm Bill Section 12101 resources in the National Animal 

Disease Preparedness and Response Program (NADPRP). Additional program-specific cost guidance may be 

included in the NADPRP Funding Opportunity Announcement. 

The Office of Management and Budget (OMB) cost principles (2 CFR Subpart E) must be used to determine 

whether a cost can be charged to the project and, if so, the extent to which it can be charged. A review of the 

detailed Financial Plan will focus on reasonable requests for expenses that support the accomplishment of Work 

Plan objectives. 

Allowable Costs 

Allowable costs must be reasonable, allocable, and necessary for project completion.

When identifying the resources needed, the Applicant must comply with Federal and State policy and should 

include the following details. 

1. Personnel: VS will allow costs for salary and wages for personnel who are essential to complete the 

activities described in the Work Plan. The total compensation per individual employee must be 

reasonable for the work performed, conform to the established policy of the organization, and be

consistently applied to Government and nongovernmental activities. Applicants must: 

• List all personnel needed to accomplish the project, including position titles, number of hours, 

hourly rate (or percentage of staff year), and the total number needed for each employee 

position 

• Identify employee’s appointment type, e.g., full-time, temporary, or part-time workers.

• Explain how employee compensation was calculated. 

• Identify any compensation increases projected during the award period. 

2. Fringe Benefits: List the benefits rate. 

• Benefits may include health and life insurance, unemployment insurance, workers’ 

compensation, retirement, social security, pensions, etc. 

• Identify benefits included in the wages or salaries (e.g., vacation and sick leave). 

3. Travel: Funds may be requested for field work, training, attendance of meetings and conferences, and 

other travel costs(excluding international travel) associated withthe proposed work. Recipients should 

follow their State written travel policies when calculating travel costs. If there is no State travel policy, 

Federal per diem rates should be used. Federal per diem rates can be found on GSA. Reference 2 CFR 

Part 200.474. 

• Local travel: Identify any local travel to project work sites as outlined in proposed activities. 

Indicate, by position type, who will be traveling, total projected mileage, and rate per mile. 

Include number of days and per diem rates for extended or overnight travel. Indicate the 

number of trips per day/week/month, as appropriate.

• Out of State travel: Identify the number of travelers, meeting/conference/training title, and 

destination. Provide the cost of transportation, lodging, subsistence and related items, number 

of days, rate per day, and the total. Registration fees should be included in the “Other” category.

• Foreign travel: Identifyany travel outside of Canada and the United States and its territories and 

possessions. However, for a recipient located outside Canada and the United States and its 
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territories and possessions, foreign travel means travel outside that country. Prior approval is 

required for all foreign travel which is accomplished by reference to it in the Work Plan and 

financial plan.

4. Equipment: The Federal definition of equipment is tangible personal property (including information 

technology systems) having a useful life of more than 1 year and a unit value of $5,000 or more unless

the Recipient definition of equipment is more restrictive. Provide a description of the equipment to be 

purchased or leased, including unit cost, and total purchase or leasing costs. The purpose of each 

equipment item and how it will benefit or be used for the project must be provided in the project Work 

Plan. 

5. Supplies: Provide a general description of the supplies required to perform the proposed activities. 

Provide an itemized breakdown of the types of supplies and total estimated cost per type when the 

cumulative value of supplies exceeds $5,000.

6. Contractual: Applicants must describe, in the narrative of the Work Plan, what the subaward/contract 

will accomplish. Applicants should include the total “contract” cost, by contractor or subrecipient, in 

the project budget. Provide a separate budget with cost breakdowns for each contractor or 

subrecipient, for all applicable cost categories and totals. Make sure to describe in the narrative of the 

Work Plan how the subaward/contract will be accomplished: competitive or sole source. Sole source 

requires a justification with the package. 

Consulting contract applicants must include: 1) name(s) of consultant(s) to be engaged; 2) daily fees to 

be paid to each consultant; 3) number of estimated days of continuing services; 4) scope of work to be 

performed (deliverables); 5) other incidental data supporting the proposed costs; and 6) a description 

of how the consultant(s) will be selected: competitive or sole source (sole source requires a justification 

with the package). 

7. Other: Identify any direct costs which were not itemized elsewhere, such as conference registration

fees, communications, printing, publication charges, computer time or usage, Recipient laboratory 

testing, etc.

8. Information Technology: Work Plans that include a cumulative request for Information Technology of 

$25,000 or more require additional USDA IT review. Information Technology is any equipment, 

interconnected system(s), or subsystem(s) of equipment that is used in the automatic acquisition, 

storage, manipulation, management, movement, control, display, switching, interchange, transmission, 

or reception of data or information by an Agency. The term “information technology” includes, but is 

not limited to, computers, network and ancillary equipment, software, firmware, and similar 

procedures, services (including support services), and related resources. Refer to 2 CFR Part 200.1 for 

additional information.

9. Outreach Materials: Program funds may be used for outreach materials, as needed to complete 

approved projects that support the program priorities. This may include developing, distributing, and 

delivering educational materials or content such as training curricula, videos, websites, pamphlets, fliers, 

fact sheets, publications, and other print and media. An applicant who receives funding for a project 

that includes the production, purchase, or distribution of materials is not obligated to put the USDA logo 

on the materials they produce or purchase under a cooperative agreement. However, APHIS has the 

option of reviewing all materials to be produced and may request acknowledgement of funding from 

the USDA APHIS NADPRP program if we determine it is in our collective best interest. Refer to the 

General Terms and Conditions for APHIS Cooperative Agreements Grants, Publications and Audiovisuals 

article for additional information. 
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VS’ total share of the project must be a whole dollar amount, no cents.

Unallowable Costs 

The items below are costs that will not be funded through NADPRP Cooperative Agreements: 

• Costs incurred prior to the effective date of the agreement(unless a pre-award has been signed).

• Construction of a new building or facility, or the acquisition or expansion of an existing building or 

facility, including site grading, improvement, and architect fees.

• Land acquisition.

• Projects or activities associated with VS-State-industry cooperative programs that are typically 

supported through appropriated funds, including activities typically funded via APHIS VS annual

umbrella agreements and Animal Disease Traceability agreements. NADPRP funds may be used to build 

on preparedness and response activities associated with other VS cooperative programs.

• Promotional or thank-you materials, incentives to encourage participation, or similar costs unallowable 

by OMB cost principles (2 CFR Subpart E – Cost Principles General Provisions for Selected Items of Cost).

• Food and beverage for meetings, trainings, or workshops.

• Bonuses or commissions.

• Fundraising.

• Meeting, conference, symposia, or workshop honoraria which is payment to individuals or guests other 

than for documented professional services. 

• Compensation of Federal Employees. Salary payments, consulting fees, or other remuneration of fulltime Federal employees are unallowable costs.

Cost Sharing 

Cost sharing and matching, defined in 2 CFR Part 200.29, is “the portion of the project costs not paid by Federal 

funds (unless otherwise authorized by Federal statute).” There is no required cost share/match for NADPRP 

cooperative agreements. If an Applicant includes contributions as part of a cost share in their budget proposal 

and it is accepted by APHIS VS, the commitment of funds becomes legally binding, must be reported on the SF425, and is subject to audit. Third-party in-kind contributions are non-cash contributions that have value that 

will benefit the project and are contributed by a non-Federal third-party without charge. These contributions 

should also be reflected in the budget proposal as part of a cost share.

Neither Applicant costs nor the value of third-party, in-kind contributions may count towards satisfying a cost

sharing or matching requirement if they have been or will be counted towards satisfying the costsharing or cost

matching requirement of another Federal assistance award, a Federal procurement contract, or any other award 

of Federal funds.

If the Applicant does not meet its cost share ratio or cost-match requirement as stipulated in the cooperative 

agreement, action can be taken to (1) reduce the next cooperative agreement, (2) reduce VS’ share 

proportionately, or (3) allow the reduced cost share when it is in the best interest of the Federal Government. 

After the cooperative agreement has expired, adjustments to a cost share cannot be approved. Refer to 2 CFR 

Part 200.306 for additional information. 

Subawards 

The 2018 Farm Bill Section 12101 provides this guidance on subawards: “Nothing in this section prevents an 

eligible entity from using funds received under the Program to enter into subawards with another eligible entity 

or with a political subdivision of a State that has legal responsibilities relating to animal disease prevention, 

surveillance, or rapid response.” 

Subawards are defined as an award provided by the applicant to a subrecipient who will be performing tasks or 

providing deliverables that adhere to the work as identified in the applicants Work Plan. If an applicant desires 
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to use a subaward, the subrecipient selected must undergo risk assessment reviews as detailed in 2 CFR Part 

200.205 in order to receive the subaward. Recipient procurements shall be in accordance with 2 CFR Part 

200.317 or .318, as applicable. Other types of subawards must be approved per 2 CFR Part 200.308 (c) (6). 

Indirect Costs 

NADPRP Eligible Applicants: If you are a NADPRP eligible applicant submitting a proposal for NADPRP Farm Bill 

funding, please calculate your indirect costs based on the following information. 

Eligible cooperator’s assessment of indirect costs is limited to no more than 10 percent of the project’s total 

costs or the application of their indirect cost rate agreement, whichever is less. The applicant must submit a 

copy of its fully executed current Negotiated Indirect Cost Rate Agreement, negotiated by its recognized Federal 

Agency, when indirect costs are assessed in the budget. 

How to calculate indirect costs (i.e., 10 percent of the project’s total costs): 

STEP 1. DIRECT COST / (1- INDIRECT RATE) = TOTAL COSTS 

STEP 2. INDIRECT COSTS = TOTAL COSTS – DIRECT COSTS 

This can be mathematically simplified to: INDIRECT COSTS = TOTAL DIRECT COSTS x 11.11%

Indirect cost rates exceeding 10 percent are not allowed. Eligible entities must notify sub-applicants of the limit 

on indirect costs, in its request for proposals/applications, so that indirect costs requested by sub-applicants plus 

indirect administration costs requested by the eligible entity do not exceed 10 percent of the total request for 

Federal funds.

Indirect costs are negotiated by the recipient and their cognizant agency (2 CFR Part 200.19). The cognizant 

agency is the Federal agency that provides the most Federal funds to the recipient. The result of this negotiation 

is a Negotiated Indirect Cost Rate Agreement (NICRA). A signed NICRA must be attached to the Application in 

ezFedGrants if indirect costs are assessed. 

Recipients that have never had a NICRA may elect to charge a de minimis rate of 10 percent of modified total 

direct costs pursuant to 2 CFR Part 200.414 (f). No documentation is required to justify this rate.

Definitions 

The eCFR :: 2 CFR Part 200 -- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 

Federal Awards includes a comprehensive list of definitions. Below are some common definitions along with 

definitions for terms that are not listed in the eCFR :: 2 CFR Part 200 -- Uniform Administrative Requirements, 

Cost Principles, and Audit Requirements for Federal Awards. 

1. Allowable costs: costs that are reasonable, allocable, and necessary to the project and comply with 

funding statute requirements. 

2. Contract: Contract means a legal instrument by which a non-Federal entity purchases property or 

services needed to carry out the project or program under a Federal award. The term as used in this part 

does not include a legal instrument, even if the non-Federal entity considers it a contract, when the 

substance of the transaction meets the definition of a Federal award or subaward. 

3. Cooperative agreement: a legal instrument of financial assistance between a Federal awarding agency 

or pass-through entity and a non-Federal entity when substantial involvement is anticipated. 

4. Cost sharing or cost matching:the portion of project costs not paid by Federal funds (unless otherwise 

authorized by Federal statute). Cost sharing refers to the portion of project not borne by the Federal 

Government, i.e., a recipient’s participation on the total cost of the project. For example, if the Recipient 

“cost-sharing” is 33 1⁄4 percent, then the Federal share is 66 3⁄4 percent of the recipient’s total project 

costs. Cost matching refers to the portion of the project not borne by the Federal Government, and it 

directly compares Federal and non-Federal participation dollar for dollar. For example – a 50 percent 
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match of Federal funds means that the recipient must provide 50 cents for every Federal dollar. A 100 

percent match means one recipient dollar (or dollar value) for every Federal dollar. 

5. Disallowed costs: those charges to a Federal award that the Federal awarding agency or pass-through 

entity determines to be unallowable, in accordance with the applicable Federal statutes, regulations, or 

the terms and conditions of the Federal award. 

6. Equipment: tangible personal property (including information technology systems) having a useful life 

of more than 1 year and a per unit value of $5,000 or more. 

7. Grant: a legal instrument of financial assistance between a Federal awarding agency or pass-through 

entity and a non-Federal entity which does not provide for substantial involvement.

8. Indirect (facilities & administrative (F&A)) costs: costs incurred for a common or joint purpose 

benefitting more than one cost objective, and not readily assignable to the cost objectives specifically 

benefitted, without effort disproportionate to the results achieved. 

9. Information technology systems: computing devices, ancillary equipment, software, firmware, and 

similar procedures, services (including support services), and related resources. 

10. Non-Federal entity: A State, local government, Indian tribe, institution of higher education (IHE), or 

nonprofit organization that carries out a Federal award as a recipient or subrecipient. 

11. Pass-through Entity: a non-Federal entity that provides a subaward to a subrecipient to carry out part 

of a Federal program.

12. Recipient: a non-Federal entity that receives a Federal award directly from a Federal awarding agency 

to carry out an activity under a Federal program. 

13. Restricted costs: a mixture of allowable and unallowable costs and/or requires agency approval. 

14. Subaward: an award provided by a pass-through entity to a subrecipient for the subrecipient to carry 

out part of a Federal award received by the pass-through entity. It does not include payments to a 

contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be 

provided through any form of legal agreement, including an agreement that the pass-through entity 

considers a contract. 

15. Subrecipient: a non-Federal entity that receives a subaward froma pass-through entity to carry out part 

of a Federal program.

16. Substantial involvement: when the Federal awarding agency provides collaboration, participation, or 

intervention. The Federal awarding agency is substantially involved when it acts as a partner with the 

Recipient. 

17. Unliquidated obligations: on a cash basis, unliquidated obligations are obligations incurred but not yet 

paid. On an accrual basis, they are obligations incurred but for which an expenditure has not yet been 

recorded. 

18. Unobligated balance:the amount of funding that has been authorized on a Federal award but remains 

uncommitted by the Recipient. 

Common Cost Types

2 CFR – Subpart E – Cost Principles General Provisions for Selected Items of Cost

Type of Cost 2 CFR Part Classification of Costs 

Advertising and public 

relations costs 

200.421 Restricted – refer to CFR 

Advisory councils 200.422 Unallowable – unless authorized by statute, the Federal agency, or as 

an indirect costwhere allocable to Federal awards 

Alcoholic beverages 200.423 Unallowable 

Alumni/ae activities 200.424 Unallowable 

Audit services 200.425 Restricted – refer to CFR 
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Type of Cost 2 CFR Part Classification of Costs 

Bad debts 200.426 Unallowable 

Bonding costs 200.427 Restricted – refer to CFR 

Collections of improper payments 200.428 Refer to CFR 

Commencement and 

convocation costs 

200.429 Unallowable except as provided for in Appendix III to Part 200-Indirect 

(F&A) Costs Identification and Assignment, and Rate Determination 

for Institutions of Higher Education, paragraph (B)(9) Student 

Administration and Services, as student activity costs 

Compensation - fringe benefits 200.431 Allowable – provided that the benefits are reasonable and are 

required by law, non-Federal entity-employment agreement, or an 

established policy of the non-Federal entity 

Compensation - personal services 200.430 Refer to CFR 

Conferences 200.432 Refer to CFR 

Contingency Provisions 200.433 Restricted – refer to CFR 

Contributions and donations 200.434 Unallowable 

Defense and prosecution of 

criminal and civil proceedings, 

claims, appeals, and patent 

infringements

200.435 Restricted – refer to CFR 

Depreciation 200.436 Restricted – refer to CFR 

Employee health and 

welfare costs 

200.437 Refer to CFR 

Entertainment costs 200.438 Unallowable 

Equipment and 

other capital expenditures 

200.439 Restricted –refer to CFR 

Exchange rates 200.440 Allowable – prior approval of agency required – refer to CFR 

Fines, penalties, damages, and 

other settlements 

200.441 Unallowable – prior approval of agency required – refer to CFR 

Fund raising and investment 

management costs 

200.442 Restricted – refer to CFR 

Gains and losses on disposition of 

depreciable assets 

200.443 Restricted – refer to CFR 

General costs of government 200.444 Unallowable 

Goods or services for 

personal use 

200.445 Restricted – refer to CFR 

Idle facilities and idle capacity 200.446 Restricted – refer to CFR 

Insurance and indemnification 200.447 Restricted – prior approval of agency required – refer to CFR 

Intellectual property 200.448 Restricted – refer to CFR 

Interest 200.449 Restricted – refer to CFR 

Lobbying 200.450 Unallowable – refer to CFR 

Losses on other awards or 

contracts 

200.451 Unallowable 

Maintenance and repair costs 200.452 Allowable 

Materials and supplies costs, 

including costs of computing 

devices 

200.453 Allowable 

Memberships, subscriptions, and 

professional activity costs 

200.454 Restricted – refer to CFR 

Organization costs 200.455 Unallowable – prior approval of agency required – refer to CFR 

Participant support costs 200.456 Allowable – prior approval of agency required – refer to CFR 
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Type of Cost 2 CFR Part Classification of Costs 

Plant and security costs 200.457 Allowable 

Pre-award costs 200.458 Restricted – refer to CFR 

Professional service costs 200.459 Restricted – refer to CFR 

Proposal costs 200.460 Restricted – refer to CFR 

Publication and printing costs 200.461 Refer to CFR 

Rearrangement and 

reconversion costs 

200.462 Allowable 

Recruiting costs 200.463 Refer to CFR 

Relocation costs of employees 200.464 Restricted – refer to CFR 

Rental costs of real property 

and equipment 

200.465 Allowable – refer to CFR 

Scholarships and 

student aid costs 

200.466 Restricted – prior approval of agency required – refer to CFR 

Selling and marketing costs 200.467 Unallowable – prior approval of agency required – refer to CFR 

Specialized service facilities 200.468 Allowable – refer to CFR 

Student activity costs 200.469 Unallowable 

Taxes 

(including Value Added Tax) 

200.470 Restricted – refer to CFR 

Termination costs 200.471 Restricted – refer to CFR 

Training and education costs 200.472 Allowable 

Transportation costs 200.473 Allowable 

Travel costs 200.474 Refer to CFR 

Trustees 200.475 Refer to CFR